Q. The WEP law will negatively affect me and a lot of people I know. Please, can you give those of us affected an update on any repeal actions now in Congress? I know there were bills put forward, but I don’t know the status, any recent activity or the likelyhood of this repeal ever being realized. Many conservatives are promoting class warfare and pit nongovernment workers against public service employees. We are not the problem. Please update us on the viability of this repeal going forward, and, if you will, how those affected can push the repeal. Who to write,…
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Q My husband and I are both CSRS retirees. My husband also receives a small amount from Social Security for quarters completed prior to government service. I do not receive any Social Security. If he passes away before me, would the windfall elimination provision apply to a spousal benefit? Would I even receive a spousal benefit as a CSRS retiree? A. Because you won’t be receiving a Social Security benefit based on your own work record, the windfall elimination provision won’t apply to you. However, any spousal or survivor Social Security benefit to which you’d be entitled will be affected by…
Q. While in the Army stationed in western Germany, I met and later married my wife, a German citizen. We were married in December 1974. She accompanied me to the U.S. in July 1977 with permanent resident status. She worked in the U.S. and the income was reported to the IRS on our joint return. In 1979, we returned to Germany where she worked for the military PX and the commissary and was paid in local currency as a German. This was done in accordance to the Host Nation agreements in place. She did not receive a W2 from either…
Q: My latest Social Security estimate pamphlet says the maximum monthly reduction for WEP in 2010 is $381. Does that mean I would take whatever amount they estimate my monthly amount will be and can count on having no more than $381 deducted from that amount for the WEP penalty? A: The windfall elimination provision reduces but does not eliminate the Social Security benefit of anyone who receives an annuity from a retirement system where he didn’t pay Social Security taxes, such as CSRS, and has fewer than 30 years of substantial earnings under Social Security. To find out how…
Q: In calculating the effect of WEP, how do the years I work between age 66 and 70 count? I plan to keep working and apply for Social Security when I am 70. At age 66, I will only have 18 years of substantial contributions under Social Security. If I continue to work until I am 70, will the additional four years of substantial contributions count in calculating the WEP when I apply for Social Security? Or will the WEP be based only on my years of substantial contributions as of age 66? A: The windfall elimination provision is applied…
Q: I am a 1998 CSRS/FERS transfer. My wife is retired and collecting a Social Security benefit. Next year when I turn 66 I thought I would take a spousal benefit off of my wife’s Social Security. Is it not true that because I have more than five years in FERS there is no GPO reduction in that spousal benefit? About a year later I plan to retire and start receiving my annuity of CSRS/FERS retirement. Even though I then would be receiving a pension that partially consists of CSRS where no Social Security was paid, wouldn’t there still be…
Q: If I elect a survivor benefit for my husband and I die before he does, will his Social Security/FERS pensions be reduced by either WEP or GPO? I am 62, retiring next month with 42 years of CSRS federal service. By law I must leave my husband a survivor annuity of 55 percent of my base salary for which monthly payments will be taken out of my retirement annuity. He is now 64, retired last year with 10 years of federal service (FERS) and now receives Social Security pension and a FERS annuity. A: Neither the windfall elimination provision…
Q: I am a firefighter for a large city that has an employee-based pension system (not Social Security). I have also been a member of the National Guard and operated a private business for 30 years on which I paid Social Security tax. Several places on the Internet use the term “30 years of substantial earnings under Social Security” in reference to Government Pension Offset (GPO). My Social Security earning sheet shows $2,464 “Your Taxed SS Earning” in 1977 and runs $3,000 to $10,000 though 2006. What does “substantial” mean, and how will WEP and GPO affect me? A: You’ll…
Q: I worked for the Department of Defense for 37 years and have more than 40 quarters. If I were to collect Social Security today I would get a little less than $350. If I wait until I am 65 years old, I could collect more than $700 in Social Security. I was married for 14 years. My former husband receives Social Security disability as well as VA 100 percent disability. I am remarried and my new husband receives twice as much as my former husband in Social Security. Which would be the best route to take here? If I…
Q: I worked in Canada until 1997. I moved to the U.S. in 1997 and became a citizen in 2007. I have been receiving pensions from the Canadian government (Canada Pension Plan). The pension is based on what I contributed through my paychecks in Canada. I am also including that amount in tax returns for the U.S. I applied for my Social Security benefits from the U.S. and they are considering my Canadian pensions as windfall income. I feel that the rule is being applied to me unjustly. Is there any way I can appeal? A: The windfall elimination provision…